2023-1-6 19:00 |
The Cardano (ADA) price has increased by 12% this year, fueled by positive news. Nevertheless, the Cardano long-term price prediction is still undetermined.
ADA is the native token of the Cardano blockchain platform. It specializes in decentralized applications (dApps) and smart contracts, and was founded by Charles Hoskinson.
There was some positive Cardano news this weekend. Minswap, the leading decentralized exchange on the Cardano network, saw its total value locked (TVL) increase by 2.53%. Other decentralized exchanges such as Indigo and WingRiders saw their TVL increase by more than 5%.
However, the most significant increase was seen by the Meld borrowing and lending protocol. The non-custodian banking platform saw its TVL increase by 20% over the past week, moving to second place in the Cardano ecosystem.
Nevertheless, not all Cardano news has been positive. The platform has been dealing with negative press regarding its programming language and questionable projects. The uneasiness is mainly focused on its fixation with Africa, which is considered a difficult market to break due to the lack of internet infrastructure.
Cardano Long-Term Price PredictionThe technical analysis from the daily time frame shows that the Cardano price has fallen since reaching a maximum price of $0.44 on Oct. 29. The downward movement led to a low of $0.24 on Dec. 30. The ADA price bounced afterward and has increased by 12%.
An interesting development is that an RSI drop preceded the upward movement to oversold territory. A similar drop was the catalyst for a 33% upward movement in Oct.
The daily RSI also generated bullish divergence (green line) in the current upward movement, further legitimizing the increase.
If the upward movement continues, the main resistance area would be at $0.30. On the other hand, a fall below the Dec. 30 low of $0.24 (red line) would invalidate this bullish Cardano price analysis.
ADA/USDT Daily Chart. Source: TradingView Will ADA Outperform BTC?The ADA/BTC chart also shows potential for a bullish reversal. The price has created a double bottom pattern inside the 15,800 Satoshi horizontal support area. This is a crucial area since the ADA token price has not reached a close below it since Jan. 2021. As a result, doing so would be an extremely bearish development.
However, the bullish double-bottom pattern has also been combined with bullish divergence in the weekly RSI (green line). This further increases the possibility of a bullish reversal. A breakout from the current descending resistance line would confirm the bullish pattern.
A weekly close below the 15,800 Satoshi support area would invalidate this bullish hypothesis.
ADA/BTC Weekly Chart. Source: TradingViewTo conclude, the most likely outlook for both ADA/USDT and ADA/BTC is the continuation of the upward movement. Decreases below the Dec. 30 lows would invalidate these bullish predictions and indicate that new lows are expected.
For BeInCrypto’s latest crypto market analysis, click here.
The post Cardano (ADA) Price Soars by 12% In Light of Increasing DeFi Activity appeared first on BeInCrypto.
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